• CDM Capital
    $CTB Yikes, referenced an $8-9 discount on the deal. #Apollotyres $APOLLOTYRE.BO
    10/7/13
    Reply (8)
    • Kevin Chapman: Im having trouble understanding how a $26 handle makes sense here...
      10/7/13
    • CDM Capital: Agree, appears really cheap. Might be a buy on this possible overreaction...
      10/7/13
    • ConservativeOutperformer: @$35 it was around $2.5B. Assuming a 20% discount in price ($2B) there is still 10% upside from here.... Taking a closer look now...
      10/7/13
    • CDM Capital: Please let us know what you find. The breakup fee is also quite massive,$112.5 million. Equating to roughly 6.65% of the total mkt cap. $CTB
      10/7/13
    • ConservativeOutperformer: At first glance, the deal stinks. A lot of bridge financing for the much smaller acquirer. I can see why Apollo wants to lower the price.
      10/7/13
    • ConservativeOutperformer: The break-up fee is intriguing, but I don't put the odds of a deal in the 80-90% range. With $CTB selling off, it looks like the mkt agrees
      10/7/13
    • ConservativeOutperformer: After looking through 10 years of financials, $CTB is ugly. If the whole thing falls apart there might be a short pop, but I wouldn't hold
      10/7/13
    • CDM Capital: CO, We basically came to the same conclusion on $CTB,buying here may seem to be attractive, but a lot of negatives potentially down the road
      10/7/13